Soilbuild REIT DPU Increases for 4QFY15

Soilbuild REIT announces its results for 4Q2015 on 21st January 2016. Distribution Per Unit (DPU) increase 1.8% to 1.614 cents as compared to 1.585 cents a year ago. This brought the total DPU for 2015 to 6.487 cents as compared to 6.193 cents in 2014.

Based on the market closing price of S$0.77 on 31st December 2015, the yield for Soilbuild REIT is 8.42% for year 2015.

4Q2015(S$’000)

4Q2014(S$ ‘000)

YoY(%)

Gross Revenue

20,434

17,682

15.6

Net Property Income

17,490

14,932

17.1

Distributable Amount

15,091

12,892

17.1

Distribution Per Unit (“DPU”) (cents)

1.614

1.585

1.8

Annualised DPU (cents)

6.487

6.193

4.7

Lease Expiry

From the below table, we can see that all of the properties in its portfolio have long land lease expiry.

Property

Land Tenure Expiry

Solaris

31 May 2068

West Park BizCentral

31 July 2068

Eightrium @ CBP

15 Feb 2066

Tuas Connection

30 Sep 2050

NK Ingredients

30 Sep 2046

COS Printers

31 Jul 2042

Beng Kuang Marine

29 Oct 2056

Tellus Marine

15 Feb 2054

KTL Offshore

18 Jul 2066

Speedy-Tech

30 Apr 2050

Technics Offshore

20 Mar 2038

Things to Note

Weakness in Manufacturing Sector

Manufacturing sector is slowing down which affects the industrial property market. This has a downward pressure on industrial rents and occupancy.

Related

One thought to “Soilbuild REIT DPU Increases for 4QFY15”

Look carefully at the financial statements. Soilbuild Reit is paying distribution out of increase in fair value of property using their cash reserves for 2014 and 2015. This artificially boost their dpu and gives a misleading picture of the dpu that’s sustainable. Dumped all my soilbuild shares when I realized it today.